Introduction to Accounting and Finance

...

THE EXPECTED RETURN ON INVESTMENT AND BUSINESS VALUE

The proposed investment is expected to provide a return on capital employed of 27% in the first year of operation. After the withdrawal RM385,610 to provide cash returns to our investors, bank balances is to stand in RM 245,600 by the end of the year. End of year net asset value of the business is forecast to be RM395,610, showing a good return for our investors in the form of cash and growth. The current ratio is forecast of 19.5 and 14.2 acid test ratio shows that the liquidity position of the company is to remain strong.

---------------------------------------------------------------

CONCLUSION

Lastly, we hope that through the company's income statement will make it easier for you to read and takes into account our requests. In accordance with the financial presented in the appendix, we believe the business idea will be worth investing your money. Additional regular returns with controlled risk is a business opportunity venture capitalist status you should not miss. This business has potential to grow in the future and have a prospectus to generate a good return for your investment. We expect you to invest in our business and are eager to work together with you and convert these opportunities into successful projects.

Supervisor of Msafni Sdn Bhd

---------------------------------------------------------------

Appendix 1a - Fixed cost

[pic 8]

Appendix 1b – Depreciation

[pic 9]

Appendix 2 - Marginal cost statement

[pic 10]

Appendix 4a - Production and Sales budget

[pic 11]

Appendix 4b - Budgeted purchases and sales revenue

[pic 12]

Appendix 4c - Staffing budget

[pic 13]

Appendix 5a - Forecast Cash Budget

[pic 14]

Appendix 5b - Forecast Income Statement

[pic 15]

Appendix 5c - Forecast Statement of Financial Position

[pic 16]

Appendix 6a – Ratios

[pic 17]

Appendix 6b - Expenses Accrued / Prepaid

[pic 18]